A customer wants me to hold stock for them — how do I fund the tied-up cash?

Holding stock for a customer ties up your cash in their convenience; finance funds it, but the arrangement should carry terms that pay you for the service. A customer asking you to hold buffer or consignment stock is asking you to fund their convenience. Your cash sits in inventory waiting for their call-off — a real working-capital cost.

A customer wants me to hold stock for them —

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Hold their stockYour cash tied up

Fund itWorking capital

Charge for itTerms that pay

Whose cash is it?

A customer asking you to hold buffer or consignment stock is asking you to fund their convenience. Your cash sits in inventory waiting for their call-off — a real working-capital cost.

Fund the held stock

A working-capital facility covers the cash tied up in stock held for a customer, so the arrangement doesn't drain your own trading cash. Size it on the working-capital calculator.

Make the terms fair

If you're funding stock for a customer's benefit, the pricing or terms should reflect that service. Don't carry the cost silently — build it into the deal.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online when the numbers work.

Frequently asked questions

Should I hold stock for a customer?

Only on terms that pay you for it. Holding buffer or consignment stock ties up your cash in their convenience, so fund it with a facility and build the cost into the pricing or agreement.

Can I finance stock I hold for a customer?

Yes. A working-capital facility covers the cash tied up in customer-held stock, so the arrangement doesn't drain your own trading cash. Just make sure the terms pay you for providing it.